Released August 30, 2024 | SUGAR LAND
en
Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)-- A few short weeks after closing down due to a power outage, the troubled Freeport LNG export facility in Texas was idled unexpectedly this week.
Freeport at times is among the busier export terminals for liquefied natural gas (LNG) in the United States. A report from the U.S. Department of Energy finds that four of the 26 vessels laden with LNG during the seven-day period ending August 21 departed from Freeport.
On Wednesday, the research team at Industrial Info Resources (IIR) confirmed that Freeport closed down unexpectedly after a fire suppression system was triggered. The plant was in the process of restarting later that day, though IIR data showed that feedgas to the facility was down 5% from normal levels.
There was no active fire reported at the facility and feedgas levels by Thursday showed the facility was indeed restarting.
Freeport can receive up to 2 billion cubic feet (Bcf/d) of natural gas, primarily taken from the inland shale basins. IIR data show the facility receives much of its gas from the Texas Eastern Transmission (TETCO) pipeline, which itself has a history of accidents that suppressed flows into the system.
This is at least the third time that Freeport shut down this year. The facility lost power after Hurricane Beryl hit Texas as a Category 1 storm in early July. The storm dropped some 10 inches of rain on the Houston metropolitan area and left more than 2 million people without power in the immediate aftermath.
An over-pressurized pipe triggered an explosion and fire in June 2022 that hobbled Freeport for much of the year. Problems with some of the electric motors meant the plant was performing below peak capacity for much of 2023, while freezing temperatures in January of this year left it facing technical challenges for weeks.
The facility shut down for several weeks in April for maintenance and repairs.
The United States is the world leader in exports of LNG, with 99 billion cubic feet of gas in the liquid form leaving export terminals during the week ending August 21. That's supported by the vast shale reserves in the nation, where production averaged 101.3 billion cubic feet per day during the period.
Much of that gas, meanwhile, winds up in Europe. Quarterly data from the European Commission show the bloc received 59% of its natural gas from pipelines, with LNG imports taking up the remaining share.
The United States is the world leader in LNG exports by far, while the European Union (EU) is the largest importer, beating out both China and Japan. France was the largest importer of LNG in the bloc during the second quarter, with 22% of total imports.
Qatar is another major LNG exporter, though its export potential pales in comparison to the United States. Nevertheless, the nation's Qatar Energy on Tuesday said it signed a 15-year sale and purchase agreement with Kuwait Petroleum Corporation (Al Shuwaikh, Al Asimah, Kuwait) for 1.4 billion cubic feet per year.
An early-year report on LNG from Shell found that demand may have peaked in some markets, though China could account for about 50% of the demand share by 2040.
On the supply side, the report said North America is expected to provide about 30% of supply growth by 2040, that the company expressed concern over takeaway capacity. Most of the gas comes from limited regions, meaning new pipeline construction will be vital.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Freeport at times is among the busier export terminals for liquefied natural gas (LNG) in the United States. A report from the U.S. Department of Energy finds that four of the 26 vessels laden with LNG during the seven-day period ending August 21 departed from Freeport.
On Wednesday, the research team at Industrial Info Resources (IIR) confirmed that Freeport closed down unexpectedly after a fire suppression system was triggered. The plant was in the process of restarting later that day, though IIR data showed that feedgas to the facility was down 5% from normal levels.
There was no active fire reported at the facility and feedgas levels by Thursday showed the facility was indeed restarting.
Freeport can receive up to 2 billion cubic feet (Bcf/d) of natural gas, primarily taken from the inland shale basins. IIR data show the facility receives much of its gas from the Texas Eastern Transmission (TETCO) pipeline, which itself has a history of accidents that suppressed flows into the system.
This is at least the third time that Freeport shut down this year. The facility lost power after Hurricane Beryl hit Texas as a Category 1 storm in early July. The storm dropped some 10 inches of rain on the Houston metropolitan area and left more than 2 million people without power in the immediate aftermath.
An over-pressurized pipe triggered an explosion and fire in June 2022 that hobbled Freeport for much of the year. Problems with some of the electric motors meant the plant was performing below peak capacity for much of 2023, while freezing temperatures in January of this year left it facing technical challenges for weeks.
The facility shut down for several weeks in April for maintenance and repairs.
The United States is the world leader in exports of LNG, with 99 billion cubic feet of gas in the liquid form leaving export terminals during the week ending August 21. That's supported by the vast shale reserves in the nation, where production averaged 101.3 billion cubic feet per day during the period.
Much of that gas, meanwhile, winds up in Europe. Quarterly data from the European Commission show the bloc received 59% of its natural gas from pipelines, with LNG imports taking up the remaining share.
The United States is the world leader in LNG exports by far, while the European Union (EU) is the largest importer, beating out both China and Japan. France was the largest importer of LNG in the bloc during the second quarter, with 22% of total imports.
Qatar is another major LNG exporter, though its export potential pales in comparison to the United States. Nevertheless, the nation's Qatar Energy on Tuesday said it signed a 15-year sale and purchase agreement with Kuwait Petroleum Corporation (Al Shuwaikh, Al Asimah, Kuwait) for 1.4 billion cubic feet per year.
An early-year report on LNG from Shell found that demand may have peaked in some markets, though China could account for about 50% of the demand share by 2040.
On the supply side, the report said North America is expected to provide about 30% of supply growth by 2040, that the company expressed concern over takeaway capacity. Most of the gas comes from limited regions, meaning new pipeline construction will be vital.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
